Post Office MIS Scheme : Looking for a low-risk investment that provides a fixed and regular return? The Post Office Monthly Income Scheme (POMIS) has recently gained attention for its ability to generate predictable quarterly income. By investing strategically, one can earn up to ₹27,750 every three months. Here’s a complete guide on how this works, who can benefit, and how you can get started today.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a government-backed savings plan designed to offer guaranteed monthly income. It’s especially suitable for conservative investors, retirees, and individuals looking for a steady source of income. The scheme is offered through India Post and is known for its safety, stability, and decent returns compared to traditional savings accounts.
Key highlights of POMIS:
- Capital protection with government backing
- Fixed monthly interest payout
- Suitable for risk-averse investors
- Available at all post offices across India
- Can be opened individually or jointly
How Can You Earn ₹27,750 Every 3 Months?
To earn ₹27,750 quarterly from this scheme, you need to invest the maximum permissible amount in a joint account. Here’s a breakdown of the math:
- Interest rate: 7.4% per annum (as of current update)
- Maximum joint investment allowed: ₹9,00,000
- Monthly income: ₹5,550
- Quarterly income (3 months): ₹16,650 (individual), ₹27,750 (joint)
Here’s a sample table showing potential earnings based on different investment amounts:
POMIS Earnings Table (Monthly & Quarterly Returns)
| Investment Amount | Monthly Interest (₹) | Quarterly Interest (₹) | Annual Interest (₹) |
|---|---|---|---|
| ₹1,50,000 | ₹925 | ₹2,775 | ₹11,100 |
| ₹3,00,000 | ₹1,850 | ₹5,550 | ₹22,200 |
| ₹4,50,000 | ₹2,775 | ₹8,325 | ₹33,300 |
| ₹6,00,000 | ₹3,700 | ₹11,100 | ₹44,400 |
| ₹7,50,000 | ₹4,625 | ₹13,875 | ₹55,500 |
| ₹9,00,000 | ₹5,550 | ₹16,650 | ₹66,600 |
| ₹9,00,000 (Joint) | ₹9,250 | ₹27,750 | ₹1,11,000 |
Note: Interest rates are subject to revision by the government on a quarterly basis.
Eligibility Criteria for Opening a POMIS Account
Before investing, you should be aware of the eligibility requirements:
- Must be an Indian resident
- Minimum age: 10 years (minors above 10 can operate the account themselves)
- NRI (Non-Resident Indians) are not eligible
- Maximum deposit for a single account: ₹4.5 lakh
- Maximum deposit for a joint account (up to 3 adults): ₹9 lakh
Account Types:
- Single Account
- Joint Account (up to 3 individuals)
- Minor Account (with guardian or self-operated if age is 10+)
Features & Benefits of the Post Office MIS
The POMIS is designed to offer a wide range of benefits that cater to different investment needs:
- Stable Monthly Income: Ideal for pensioners or households looking for additional income
- Government Security: Zero risk of default, backed by the Government of India
- One-Time Investment: No need for recurring deposits
- Nomination Facility: Assign a nominee to receive the proceeds
- Reinvestment Options: Reinvest the maturity amount into other schemes like SCSS or RD
- Easy Access: Available at all post office branches
How to Open a Post Office MIS Account
Opening a POMIS account is a simple and straightforward process:
- Visit the nearest post office branch
- Fill out the POMIS account opening form
- Submit KYC documents (Aadhaar, PAN, Passport-size photo)
- Deposit the investment amount via cheque or cash
- Choose account type – single or joint
- Provide nominee details
Once your account is opened, monthly interest will be credited directly to your linked post office savings account.
See more : Invest ₹2 Lakh and Get THIS Much in Just 5 Years
Required Documents
| Document Type | Examples |
|---|---|
| Proof of Identity | Aadhaar, PAN Card, Voter ID |
| Proof of Address | Utility Bill, Passport, Aadhaar |
| Passport-Size Photo | Recent color photo |
| Account Form | Available at the post office |
| Nominee Details | Mandatory to fill at the time of opening |
Maturity and Withdrawal Rules
The Post Office MIS has a maturity period of 5 years. After 5 years, you can either withdraw the invested amount or reinvest it in another scheme.
Early Withdrawal Penalty:
- No withdrawal allowed before 1 year
- If closed after 1 year but before 3 years: 2% penalty on principal
- If closed after 3 years but before 5 years: 1% penalty on principal
Upon maturity, if the amount is not withdrawn, it will continue to earn interest as per savings account rate (currently lower than MIS).
Who Should Consider the POMIS Scheme?
This scheme is ideal for individuals who:
- Are retired or planning for retirement
- Want a safe, fixed monthly income
- Are risk-averse and prefer government-backed investments
- Are looking for a tax-free income (note: interest is taxable, but no TDS deducted)
Alternatives to POMIS
If you’re exploring similar low-risk investments, here are some alternatives to consider:
Comparative Table: POMIS vs Other Popular Schemes
| Feature | POMIS | Senior Citizens Savings Scheme (SCSS) | Bank FD (5-Year) | RBI Floating Rate Bonds |
|---|---|---|---|---|
| Interest Rate | 7.4% | 8.2% | ~6.5-7% | 8.05% (floating) |
| Tenure | 5 Years | 5 Years | 5 Years | 7 Years |
| Risk Level | Very Low | Very Low | Low | Low |
| Premature Withdrawal | After 1 Year | After 1 Year with Penalty | Possible | Not Allowed |
| Tax Benefit (80C) | No | Yes | Yes | No |
| Payout Frequency | Monthly | Quarterly | Cumulative/Periodic | Half-Yearly |
The Post Office Monthly Income Scheme is a tried-and-tested investment option for those seeking guaranteed, regular income without market-related risks. With a reasonable interest rate, government security, and simple operation process, it serves as a reliable option for retirees, homemakers, and anyone looking to earn ₹27,750 every 3 months from a safe investment.
While it may not offer high returns like mutual funds or stocks, its low-risk nature makes it a smart addition to any conservative portfolio.
Interest rates are subject to change as per government policies. Always check with the post office for the latest rates before investing. This article is for informational purposes only and should not be considered financial advice. Please consult a certified financial advisor for personalized guidance.